Encavis Secures €61 Million for Solar Park Development

• Encavis AG secures €60.7 million for a solar park in Germany, boosting its commitment to renewable energy and aiming for 7 GW capacity by 2027!

Encavis AG has secured a project financing agreement worth EUR 60.7 million (USD 67.03 million) from Bayerische Landesbank for the development of its 114.2 MW solar park in Borrentin, Germany. The financing package includes EUR 46.8 million in term loans, a EUR 2.75 million VAT facility, and EUR 11.1 million in letter of credit facilities. The Lindenhof solar plant is slated for completion by September 2024 and is expected to produce 121 GWh of electricity annually, with 74% allocated to a corporate offtaker under a ten-year power purchase agreement.

This financing comes on the heels of Encavis securing EUR 145 million in July for a 260-MW solar project in Bartow, Germany. The company has set an ambitious target of achieving an installed capacity of 7 GW by the end of 2027, underscoring its commitment to expanding solar energy in the region.

What are the key details of Encavis AG’s recent solar project financing?

Here are the key details of Encavis AG’s recent solar project financing:

- Financing Amount: Encavis AG has secured a total project financing agreement of EUR 60.7 million (approximately USD 67.03 million).

- Funding Institution: The financing is provided by Bayerische Landesbank, a leading financial institution in Germany.

- Loan Breakdown: The financing package consists of:
- EUR 46.8 million in term loans.
- EUR 2.75 million allocated for a VAT facility.
- EUR 11.1 million in letter of credit facilities.

- Project Specification: The financing supports the development of a 114.2 MW solar park located in Borrentin, Germany.

- Project Timeline: The Lindenhof solar plant is expected to be completed by September 2024.

- Energy Production: Once operational, the solar park is projected to generate approximately 121 GWh of electricity annually.

- Corporate Offtake Agreement: Of the total electricity produced, 74% is designated for a corporate offtaker through a ten-year power purchase agreement (PPA), ensuring a long-term revenue stream.

- Preceding Financing Success: This financing follows a previous successful financing arrangement in July, where Encavis secured EUR 145 million for a 260-MW solar project in Bartow, Germany.

- Strategic Goals: Encavis AG aims to significantly expand its renewable energy footprint, setting a target to achieve an installed capacity of 7 GW by the end of 2027, indicating a strong commitment to solar energy development in the region.

- Market Positioning: By investing in large-scale solar projects, Encavis AG is reinforcing its position in the renewable energy market, aligning with global shifts towards sustainable energy solutions.

- Sustainability Commitment: The project aligns with broader sustainability goals, contributing to the increase of renewable energy sources and supporting Germany's energy transition initiatives.

This financing marks a significant step in Encavis AG's ongoing efforts to enhance its solar portfolio and contribute to a greener energy future.